06/06/2023

SEC Sues Coinbase, a Day After Taking Aim at Binance

It's been accused of operating as an unregistered securities broker

The Securities and Exchange Commission (SEC) accused the cryptocurrency platform Coinbase of operating as an unregistered securities broker, putting investors at risk of fraud and manipulation, in a lawsuit filed Tuesday.

It was the federal regulator’s second action in as many days against a major cryptocurrency player amid a broadening industry crackdown. On Monday, it sued Binance, the world's largest crypto exchange, alleging it violated securities laws and made false statements to investors.

On Tuesday, the SEC accused Coinbase of performing the functions of a securities exchange, broker and clearing agency ― entities that have expansive reporting requirements ― since at least 2019. The lawsuit, filed in U.S. District Court for the Southern District of New York, asked for unspecified civil penalties along with the forfeiture of any ill-gotten gains, as well as a permanent injunction from violating SEC rules.

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